Restaurant and Bar
New
For Sale
$350,000
3500 Fort Henry Drive, Kingsport, TN 37664
Equipped restaurant property with commercial kitchen, dining areas, bar service, paved parking, and recent building upgrades.
Property Size2,656 SF
Lot Size0.17 Acres
Price / SF$131.78
Days on Market2
Property Features for 3500 Fort Henry Drive
General Information
Standard status
Active
Size
2,656 SF
Lot size
0.17 Acres
Property subtype
Commercial
Restaurant
Hood Type
Type I
Commercial Hood
Yes
Equipment Included
Yes
Additional Details
Furnished
Yes
Sprinkler System
Yes
Building Details
Year Built
1953
Listing Agency:
Conservus Homes
Listed By:
Bud Beverly · License #4721
(423) 341-2027
Source:
Bpre
Added: Sep 4
Last Checked: Sep 4 at 2:25PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Conservus Homes
Investment Insights
Based on property information with market context.
This 2,656-square-foot restaurant property at 3500 Fort Henry Drive includes dining and bar areas, a commercial kitchen, office shelving, paved parking, and access. The kitchen equipment package includes a Waco pizza oven, Alto-Shaam/Halo Heat convection proofing oven, griddle, range top, dual fryers, walk-in cooler, refrigeration, ice machine, dishwasher, exhaust hood, and stainless preparation surfaces. Bar improvements include a 14-tap draft system, eight-flavor soda dispenser, coffee equipment, furnishings, glassware, and televisions.
The property sits on approximately 0.17 acre in Kingsport. Capital work completed during 2024-2025 includes new heat pumps, a complete electrical rewire with dual 200-amp Leviton Smart Panels, and a fully permitted fire sprinkler system. Furniture, décor, smallwares, security equipment, technology, and Toast POS hardware are intended to convey, subject to applicable contracts and transfer requirements. The restaurant is not currently operating, and a detailed FF&E and conveyance list is available.
The property sits on approximately 0.17 acre in Kingsport. Capital work completed during 2024-2025 includes new heat pumps, a complete electrical rewire with dual 200-amp Leviton Smart Panels, and a fully permitted fire sprinkler system. Furniture, décor, smallwares, security equipment, technology, and Toast POS hardware are intended to convey, subject to applicable contracts and transfer requirements. The restaurant is not currently operating, and a detailed FF&E and conveyance list is available.
Key Highlights
- 2,656‑square‑foot restaurant property on approximately 0.17 acre
- Extensive commercial kitchen package with pizza oven, fryers, refrigeration, dishwasher, and Type‑1 exhaust hood
- 14‑tap draft beer system and 8‑flavor soda dispensing system
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$28,087
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.02%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$561,740
$561.7K
Cap Rate 7%
$401,243
$401.2K
Cap Rate 9%
$312,078
$312.1K
Market Conditions
NOI Build-Up for 2,656 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$39.8K $15.00/SF
− Vacancy
−$2.4K −$0.90/SF
EGI
$37.4K $14.10/SF
− OpEx
−$9.4K −$3.53/SF
NOI
$28.1K $10.58/SF
Area
Sullivan County, TN
Vacancy
6.00%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$561,740
Cap Rate 7%
$401,243
Cap Rate 9%
$312,078
Alternative Uses
Best Use
Specialty Retail
$401.2K
$351.1K – $468.1K
NOI $28,087 @ 7.0% cap · market cap 8.02%
Second Best
Industrial
$251.3K
$219.9K – $293.2K
NOI $17,592 @ 7.0% cap · market cap 5.03%
Theoretical Best
Office A
$994.6K
$870.3K – $1.16M
NOI $69,624 @ 7.0% cap · market cap 19.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Sprinkler system
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
102
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 37664, TN
28,748
Population
13,914
Households
2.1
Avg Household Size
44
Median Age
34%
College-Educated
92%
High-School Grad
33.9 sq mi
ZIP Area
848
Density / Sq Mi
$61,164
Median Household Income
$37,047
Median Earnings
$817
Median Rent
$204,900
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Equipped restaurant property with commercial kitchen, dining areas, bar service, paved parking, and recent building upgrades.
Where is this conventional restaurant located?
The property is located at 3500 Fort Henry Drive Kingsport, TN.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: 2,656‑square‑foot restaurant property on approximately 0.17 acre; Extensive commercial kitchen package with pizza oven, fryers, refrigeration, dishwasher, and Type‑1 exhaust hood; 14‑tap draft beer system and 8‑flavor soda dispensing system
